As a commercial real estate (CRE) landlord, staying ahead of the curve is vital in ensuring you maximise the value of your portfolio. One way to do this is by investing in demand control ventilation (DCV) for your building. DCV can not only improve the value of your asset but also offer a USP when attracting and retaining tenants. It has the capacity to reduce energy costs through advanced temperature sensing technology. As a result, DCV systems offer an unprecedented level of efficiency while contributing significantly to sustainability goals.
Before you get started, if you’d like to learn more about the ins and outs of DCV, you can read our previous article What is Demand Control Ventilation and Why Is It Important for Commercial Real Estate Landlords?
Continue on to learn how implementing DCV into your property can increase the value of your commercial building portfolio.
Increase Tenant Retention Rates with Occupier Comfort
The world of commercial real estate is constantly adapting to the new normal post-pandemic. To stay profitable, landlords must focus on attracting tenants and reducing churn when break clauses become active. Intuitive solutions such as IoT-driven data provide an efficient way to monitor spaces in order to guarantee tenant satisfaction.
DCV allows spaces to adapt to the changing use throughout the day. This increases tenant retention rates because people prefer to work in environments that are tailored to their needs. For example, DCV systems can adjust the temperature in different areas of the office according to occupant-generated data. Consequently ensuring that everyone enjoys an optimal level of comfort regardless of where they sit or which window they are near. DCV monitors air quality and humidity, so occupants don’t have to be exposed to stale air or excessive dust particles. All these features make it easier for landlords to keep tenants happy and ensure they stay for the long run.
Command Premium Rents from Energy Efficiencies
Demand control ventilation allows CRE landlords to command a rent premium. DCV offers energy efficiencies that lower bills and reduces carbon emissions, both of which are attractive to prospective tenants. Many companies are now leasing sustainable and healthy buildings in order to align with their wider corporate ESG goals. Thus many prospective tenants are willing to pay a premium for smart buildings that lower their energy bills and emissions.
Through DCV, tenants enjoy the benefits of improved air quality and energy efficiency without landlords needing to invest in costly upgrades. Therefore DCV offers a cost-effective way to provide tenants with a healthy and efficient environment which commands higher rental premiums.
A recent study showed that landlords benefit from large rental bonuses associated with building certifications. These certifications take into account the use of resources and energy efficiencies. In particular, BREEAM labels topped the list with an added 10% value, while LEED was not far behind at 5.1%. Additional labels ranged between 4.9%-5.4%, illustrating the importance of green certification when it comes to reaping financial rewards.
A building that can demand higher rents, often commands a higher valuation, especially when paired with industry-leading retention rates.
Gain Sustainability Certifications Valued by Investors
Property owners have a golden opportunity to capitalise on wellness and sustainability trends by getting their buildings green certifications. This provides value through increased revenue opportunities. It also helps reduce costs in the long run as occupiers push for healthier and greener workplaces – especially post-pandemic.
DCV technology helps landlords achieve sustainability certifications such as WELL, LEED, BREEAM or SmartScore. These certifications demonstrate that your building is healthy and designed and operated sustainably. It also shows that the building is capable of reducing its carbon footprint drastically over time. That is an important factor for many investors when evaluating potential investments.
Recent research into the worth of buildings with green certifications has yielded some eye-opening information. An analysis of European countries revealed that properties holding such certification commanded a 19% price premium in the market.
DCV systems are revolutionising how landlords can maximise their portfolio value. This technology provides tenants with a greater level of comfort and as a result, improves retention. With the post-pandemic push for clean and sustainable workplaces, there’s no better time to invest in a DCV system. Landlords can maximise their return on investment faster through premium rents whilst ensuring long-term building value is maximised. Consequently, DCV installation is also the key to unlocking sustainability certifications which allow businesses to stay ahead in today’s green-focused marketplaces. Investing in these ecologically friendly measures will ensure product differentiation and maintain competitive advantage going forward!
If you are looking to increase the value of your property, contact us at Incube Space. Our CubeOS platform utilises machine learning to provide predictive analytics and a demand control ventilation system that can reduce power consumption by 50% whilst achieving optimal indoor air quality and thermal comfort for tenants. Not only do you ensure happy tenants and occupiers but you can boost the value of your commercial real estate properties significantly above average. Book a demo with us and see how CubeOS can save you thousands and add hundreds of thousands or more to your building’s value.